Tuesday, July 3, 2012

20120703 1547 Local & Global Economy Related News.

The free trade agreement (FTA) signed between India and Malaysia in July 2011 has propelled bilateral trade to a "historic record level" in 2011, said Malaysian trade commissioner, Noraslan Hadi Abdul Kadir. Noraslan said two-way trade in 2011 surged by 32.7% to RM38.36bn from RM28.91bn previously. This is an all-time record level in trade with India, surpassing the previous best of RM35bn in 2008, he said. For the past 10 years, India-Malaysia trade has recorded a 15.6% average total trade growth rate, he noted. (BT)

Malaysia's information and communications technology (ICT) industry is projected to remain bullish for 2H12, said Multimedia Development Corporation (MDeC). Its CEO Datuk Badlisham Ghazali said the growth forecast for the sector of 8-10% for 2012 by the National ICT Association of Malaysia (PIKOM) lent support to the outlook. (BT)

The Northern Corridor Implementation Authority (NCIA) plans to establish 100 entrepreneurs in the Northern Corridor Economic Region (NCER) who will be trained as high technology agropeneurs to produce agriculture products of high value and yield. Its chief executive Datuk Redza Rafiq said the plan will be jointly carried out by JPB Asia Pasifik Sdn Bhd and its partners, MRT Japan Co Ltd, which is a supplier of vegetables and fruit to Japan, Singapore, Thailand, China and the US. JPB and MRT Japan will invest another RM105m, he said. (Financial Daily)

The country cannot rely on fuel subsidy-driven consumption to prop up the economy in the long run, said PM Datuk Seri Najib Tun Razak. He acknowledged that Malaysia has one of the lowest pump prices in Southeast Asia - second only to Brunei Darussalam - but pointed out that the country needed to reposition its oil-based revenue towards economic development. (The Star)

The World Bank is in a strong financial position to meet loan demand from emerging markets if the global economy deteriorates, said World Bank President Jim Yong Kim, who assured that the bank was “monitoring the situation very carefully.” (Bloomberg)

US construction spending rose 0.9% mom in May (a revised 0.6% in Apr), overshooting consensus of 0.2%, whilst on a yoy basis, the measure gained 7.0% (a revised 8.9% in Apr). (Bloomberg)

The US ISM manufacturing index fell to 49.7 in Jun (53.5 in May), undershooting consensus of 52.0 and is the first contraction since Jul 2009. (Bloomberg)

US Markit manufacturing PMI fell to 52.5 in Jun (54.0 in May), lower than the flash estimate of 52.9. (Bloomberg)

The US is likely to face increased pressure from other donor nations in the coming months to allow greater assistance to Myanmar, according to Stephen Groff, a vice president with the Asian Development Bank, although the Treasury Department remains bound by law to block the ADB and World Bank from providing most aid to Myanmar even after President Barack Obama’s administration eased sanctions in May. (Bloomberg)

Eurozone’s Markit manufacturing PMI came in at 45.1 in Jun in the final reading (44.8 in the initial reading), unchanged from a nearly three-year low in May and is below 50.0 for the 11th straight month. (Bloomberg)

Eurozone unemployment rose to 11.1% in May (11.0% in Apr), the highest since the data series started in 1995 as a deepening economic slump and budget cuts prompted job cuts. A whopping 17.561m people were unemployed in May, up 88,000 from the previous month. (Bloomberg)

China’s HSBC-Markit Economics manufacturing PMI fell to 48.2 in Jun (48.4 in May), a seven-month low as overseas orders dropped. (Bloomberg)

China’s home prices increased 0.1% mom in Jun to Rmb8,688 psm (US$1,369) after nine straight months of decline, according to a SouFun survey of 100 cities. (Bloomberg)

China’s leading index was unchanged at 99.9 in May. (Bloomberg)

Japanese sales of cars, buses and trucks totaled 317,152 vehicles in Jun, up from 225,024 vehicles a year earlier, marking the 10th straight month of gains, the Japan Automobile Dealers Association said. (WSJ)

Sentiment among large Japanese manufacturers improved in the quarter ended Jun to -1 from -4, the Bank of Japan said Monday, although confidence remained weak amid a lumbering economic recovery. (AFP)

South Korea lowered its export growth forecast for 2012 to 3.5% from 6.7%. (Bloomberg)

India’s HSBC-Markit manufacturing PMI rose to 55.0 in Jun (54.8 in May), helped by new order inflows. (WSJ)

Singapore’s private residential property price index rose 0.4% qoq record 206.8 points in the three months ended 30 Jun. (Bloomberg)

Resale HDB flat prices in Singapore have inched upwards yet again, this time by 1.3% qoq in 2Q12 (0.6% in 1Q12). (Channel News Asia)

Thailand’s consumer confidence index rose slightly in Jun but the future sentiment index dropped following the public’s lack of confidence in the economy. The overall consumer confidence index stood at 27.6 in Jun, from 27.4 in May, whereas the future sentiment index is 32.1, lower than the previous score of 33.4. The index on future income in the next three months is 46.3, dropping from 51.2. (Thai Financial Post)

Thailand’s auto exports to Europe fell more than 29% in the Jan-Apr 2012 period, according to the Federation of Thai Industries. (Thai Financial Post)

Thailand’s consumer prices were up 2.56% yoy in Jun (2.53% in May) as the prices of food and energy remained weak, according to the Commerce Ministry. The ministry now estimates that inflation this year will come in at about 3.5%, still falling within the projected range of 3.2% to 3.8%, as the global economy slows and energy prices fall. (Bangkok Post)

Indonesia’s inflation rose to 4.53% yoy in Jun (4.45% in May), spurred by higher basic food prices, including red chillies. On a mom basis, the measure gained 0.62% (0.07% in May). Core inflation stood at 4.15% (4.14% in May). (AFP)

In Indonesia, exports in May fell 8.5% yoy, after declining a revised 2.3% in Apr. Imports rose 16.1% in the same period from 13.8% in May. The trade deficit in May was US$486m versus US$765m the previous month. (Bloomberg)

HSBC's manufacturing PMI for Indonesia rose to 50.2 in Jun from 48.1 in May, supported by domestic demand. (Dow Jones)

Bank Indonesia Governor Darmin Nasution said the central bank would possibly rule on bank ownership regulations in mid-Jul. A deputy bank governor had earlier told reporters the rules could be issued in late Jun. (Reuters)

The number of foreign tourists coming to Indonesia in May rose 8.45% yoy, faster than April's 2.96%. (Reuters)

The HSBC manufacturing PMI for Vietnam declined to 46.6 in Jun from 48.3 in May. (Bloomberg)

Despite a decrease of 0.6% in Jun, Vietnam’s retail sales value of goods and services in 1H12 surged 6.5% yoy to VND1,137tr (US$54.2bn), lower than the 7-10% recorded in the same period in recent years, according to the General Statistics Office (GSO). (Vietnam News)

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